European automakers go slow on investments

Published
8
Renault announced acquisition of land at M-3 Industrial City in Special Economic Zone Faisalabad in June last year with the expected plant capacity of 50,000 units per annum.
Renault announced acquisition of land at M-3 Industrial City in Special Economic Zone Faisalabad in June last year with the expected plant capacity of 50,000 units per annum.

ISLAMABAD: Several Southeast Asian companies have started to roll out their vehicles, but slow pace of European manufacturers indicates their lacklustre interest in the Pakistani market.

The two European brands that had expressed interest to enter the Pakistani market under Auto Policy 2016-21 were Volkswagen AG of Germany and Renault of France. However, none of them have made any significant progress in this regard.

“Renault has acquired land in Faisalabad but there has been no progress to establish assembly plant, while Volkswagen still has to get the possession of land in Karachi as stated by their local partner,” said an official of the Ministry of Industries and Production (MoIP).

Under the policy, there are two categories for entrants; first for ‘greenfield investments’ relating to the installation of new automotive assembly and manufacturing facilities and the other for ‘brownfield investment’ to revive an existing assembly or manufacturing plant that was non-operational by July 1, 2013.

Ghandhara Nissan - that used to make Nissan Sunny car in Pakistan - is set to launch ‘Nissan Crossover’ globally in 2020 with the model expected to be introduced at local assembly line in 2020.

Daehan Dewan Motor Company is also in the process of reviving its small commercial truck ‘Shehzore’ and one vehicle in SUV category with SsangYong Motor Company (SYMC) of Korea.

SYMC has submitted an aggressive plan to MoIP that their SUVs will roll out in 2019 but there were certain technical hitches with Shehzore.

Meanwhile, United Motors - the country’s second largest bike manufacturer - has launched its first car in Pakistan under its greenfield investment. Similarly, Regal Automobile Industries has established assembly plant in Lahore in collaboration with DSFK Motors of China and it is rolling out small commercial trucks.

KIA Lucky Motors has also launched Grand Carnival and K2700 pickup trucks and their SUV assembling is expected from July this year. Master Motors, in joint venture with Chinese automaker Changan, has a plant at Port Qasim near completion with the company already having launched its jeep and SUV, while cars and heavy trucks are set to be online by June this year.

Another Chinese auto company Foton JW Auto Park too is rolling out LCVs from its plant in Lahore. Hyundai Nishat Motors’ plant in Faisalabad is close to completion and its locally assembled cars are expected to be available by January 2020. Sazgar Engineering Works is also set to launch cars, jeeps and SUVs by end of 2019.

Khalid Mushtaq Motors too is scheduled to roll out their Chinese model of small commercial trucks (by the end of this year.

The total number of companies in Category A has increased to 14 but Renault, Pak China Motors, Topsun Motors & Engineering Services and Khalid & Khalid Holding are falling behind their schedule.

Published in Dawn, March 26th, 2019

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Fixing bond markets
Updated 01 Oct, 2026

Fixing bond markets

Pension funds, insurance companies, mutual funds, retail investors, and eventually, foreign investors must become bigger participants in the market.
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...
Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...